All Articles Tagged - FOMC

Asian Session – Aussie rallies on CPI; US dollar awaits Fed statement

Posted on January 28, 2015 at 8:05 am GMT

The US dollar was trying to make a comeback after being sold heavily the previous day because of profit-taking and some mixed data that cast some doubts on the strength of the US economic expansion. Furthermore, according to the earnings reports of US multinationals, the strong dollar was having a negative impact on their profitability, which in turn hurt the US stock market. Euro / dollar was trading at 1.1365, after briefly trading above 1.14 the previous day. Dollar / [..]

European Session – Euro below 1.12, sterling unmoved by better-than-expected UK retail sales

Posted on January 23, 2015 at 3:07 pm GMT

The US dollar has been the main beneficiary of Thursday’s European Central Bank announcement of its new QE program. The 60 billion a-month bond purchase program along with expectations of higher US interest rates will see a widening gap between the euro and the dollar. The euro extended lower today to hit fresh 11-year lows of 1.1113 in the European session, down from a pre-ECB level of 1.1650. Against the pound, the euro hit a new 7-year low of 0.7427 [..]

European Session – Strong dollar ahead of FOMC, negative Eurozone CPI push euro to 9-year low

Posted on January 7, 2015 at 2:37 pm GMT

The euro moved another leg lower against the dollar today to touch a 9-year low of 1.1818. The main catalyst for today’s move was a lower-than-expected Eurozone CPI figure. Inflation fell to an annual rate of – 0.2% in December, the first time it went negative since 2009. Expectations were for a drop in the annual inflation rate to – 0.1%. The main contribution to a lower CPI rate came from energy prices, which is an important component in the [..]

Forex News – Yellen puts risk appetite back, dollar rises

Posted on December 18, 2014 at 11:13 am GMT

Federal Reserve Chair Janet Yellen put risk appetite back in the markets after her hawkish comments made on Wednesday following the conclusion of a 2-day Federal Reserve policy meeting. Yellen said that as progress in achieving maximum employment and 2% inflation continues, at some point it will become appropriate to begin reducing policy accommodation. However, the Fed is eyeing those improvements with caution and it isn’t yet convinced it can start to pull away its stimulus of record-low interest rates. [..]

Asian Session – US dollar extends post-FOMC gains

Posted on December 18, 2014 at 7:52 am GMT

The US dollar rallied strongly after the Fed expressed confidence in the country’s economic rebound. The accompanying policy statement said the Fed would be “patient” in removing policy accommodation and loose monetary policy would likely remain in place until 2017, according to the Fed Chair. When asked to specify what “patience” meant, Janet Yellen said that rates would remain at zero at least for the next couple of meetings. That would put the earliest date for a rate hike at [..]

European Session – All eyes on FOMC as dollar gains

Posted on December 17, 2014 at 3:01 pm GMT

The US dollar was broadly stronger leading into today’s Federal Reserve policy meeting and US inflation release. There are expectations for a shift to a more hawkish tone as there is speculation that the Fed will tweak its statement and remove its ”considerable time” phrase, with reference to interest rates. Market chatter says the Fed will replace this phrase with a different term that would show some indication that the central bank is gearing up to begin hiking rates in [..]

Asian Session – Dollar / yen recovers ahead of FOMC

Posted on December 17, 2014 at 8:16 am GMT

The currency market was waiting for the outcome of the 2-day Federal Reserve meeting today and the US dollar managed to post some gains. There was increased turbulence in forex markets lately as a result of falling crude oil prices and the collapse of the Russian ruble, which created a risk aversion atmosphere. Dollar / yen climbed to 117.28 during the Asian session, after dropping to as low as 116.30 in early trading. Dollar / yen dropped to as low [..]

European Session – Dollar rises on headline US Q3 GDP

Posted on October 30, 2014 at 2:35 pm GMT

The US dollar held onto gains today following upbeat US third quarter growth numbers. The advance reading of GDP rose at an annual rate of 3.5% between July and September, which beat forecasts by 0.5%. The main driver behind expansion in Q3 was a jump in military spending, (the highest in 5 years) and solid gains in business investment and export sales. Today’s data follow a 4.6% rebound in Q2 GDP but despite the Q3 figure being lower, economists believe [..]

Forex News – Dollar firms as Fed ends QE, sees improving US labor market

Posted on October 30, 2014 at 11:05 am GMT

The Federal Reserve concluded its 2-day policy meeting on Wednesday with a surprisingly upbeat statement by the FOMC (Federal Open Market Committee). The US central bank announced that its stimulus program of bond purchases will stop at the end of October, as was widely expected by the markets. What was not expected was the more hawkish tone in the statement as it showed that the Fed had more confidence in the US economy and did not seem too bothered about [..]

Forex News – Fed focus on soft US inflation leaves dovish tone in FOMC minutes

Posted on October 9, 2014 at 10:24 am GMT

On Wednesday the Federal Open Markets Committee (FOMC) released minutes of the latest policy meeting from September 16-17. The dovish tone of the minutes dropped a surprised on the markets and caused the dollar to plunge while US stock markets rallied. The minutes indicated that the Fed showed signs of concern over the global slowdown and the impact this would have on the US economy as a whole. Also there is fear that recent strength in the dollar has a [..]

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